© Copyright 2015 Ushio Group. All Rights Reserved. No duplication of any materials herein is authorized without the express consent of Ushio Group.
FY2015 Financial Results
USHIO INC.
May 11, 2016 This report contains forward-looking statements, including earnings forecasts, which are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Please be advised that actual results may differ substantially from those forward-looking statements due to various factors.
* All figures in the material have been rounded down to the nearest billion yen.
2
Reference: Transition to a Company with Audit and Supervisory Committee
For further details, please see the press release dated March 28, 2016 that has been provided.
In order to further strengthen the supervisory function of the Board of Directors and promote speedy decision making by delegating decisions on certain important business matters to Executive Directors and Executive Officers. A majority of the Board of Directors will be Outside Directors at the time of the transition.
1. Reason for transition
USHIO plans to transition to a Company with Audit and Supervisory Committee on condition that the necessary amendments to its Articles of Incorporation are approved at the 53rd Annual General Meeting of Shareholders to be held on June 29, 2016.
2. Timing of the transition
3
1. Targets to be Achieved under the Current Medium-term Management Plan
2. Review of Previous Medium-term Management Plan
3. Key Strategies under the Current Medium-term Management Plan
4. Increasing USHIO’s Corporate Value
5. Medium-term Management Plan by Business Segment a. Sales by Business Sub-Segments b. Equipment Business (b-1.Imaging b-2.Optical) c. Light Sources Business
Agenda
4
1. Targets to be Achieved under the Current Medium-term Management Plan
Operating Income 20 billion yen
Sales 230 billion yen Operating Income (%) 8.7%
Targets for FY2018 (ending March 2019)
Transformation into a Highly Profitable Company
5
2. Review of Previous Medium-term Management Plan
(1) Reassess and reallocate resource distribution
3. Bolster shareholder returns
・Purchased treasury shares (FY2015) 1st time:2.0 billion yen 2nd time:960 million yen (completed on April 8, 2016)
・Accelerated management by delegation of authority ・Made efforts to improve R&D investment efficiency ・Made M&A investments (Approx. ¥9 billion) ・Expanded solutions in imaging equipment business ・Strengthened monitoring of investments ・Strengthened Group synergies (Established strategic joint operation teams in
businesses and regions)
(3) Enter new markets
(2) Transition to solutions business
Strategies
(4) Expand M&A investment
Implemented(FY2015)
2. Enhance capital efficiency
Convert financial assets to business assets
1. Expand business earnings
6
Reference: M&A Strategy - Transition of Investment Values
・Contribution to increased corporate value
・Emphasis on synergy effects
Goal Direction ・Related to the field of “light” ・Increase monetary amounts and
number of M&As
7
Reference: M&A in FY2015 (Including Partial Investments)
Solid State Light
Sources Business
Science Business
Imaging Business
Existing Business New Business
【Expected synergies】 Expand total solution development in the growth field of digital signage
【Expected synergies】 ・Strengthen product lineup ・Reinforce Group strength
【Expected synergies】 Accelerate entry into new fields through light sources
【Expected synergies】 ・Stable revenue through
expansion of consumables business
・Sales channel expansion for existing products
Biomedical Business
8
Transform into a Highly Profitable Company
3. Key Strategies under the Current Medium-term Management Plan
Pursue New Growth Opportunities
・ Move to second stage of structural reform in the optical equipment business
・ Increase cost competitiveness in Light Sources and Equipment businesses
・ Expand existing products in new fields ・ Full-scale expansion of the solutions businesses - Establish solution-type business model in the imaging field - Expand solution-type business into other business fields ・ Expand M&A investment focused on synergies
Maintain and Improve Earning Capability in Existing Businesses
9
4. Increasing USHIO’s Corporate Value
目的
Policy : Achieve ROE 8% or Above
FY2018 (in 3 years)
Achieve operating income of 20 billion yen 【Existing business】 ・Maintain and Improve Earning Capability 【New business】 ・ Expand existing products in new
fields ・ Full-scale expansion of the solutions businesses ・ Expand M&A investment focused on
synergies
・ Implement continued treasury share purchases
・ Stable dividends
【Convert financial assets to business assets】 ・Revise cross-shareholdings ・Shift to growth investments such
as M&As
Enhance earning capability
Downsize net assets
Expand business earnings (Top Priority) Enhance capital efficiency
Bolster shareholder returns
10 *Under prerequisite of foreign exchange rate of the Mid-term management plan:1US$=115yen 1EURO=125yen
Segment Sub-segment
Last year This year 1st year* 3rd year* Changes in 3 years
CAGR (FY18-FY15)
FY14 FY15 FY16 FY18 (billion yen) (%) (%)
(Results) (Results) (Plan) (Plan)
Equipment
Imaging 60.3 70.3 81.0 97.0 26.7 38 11 Optical 21.2 25.9 28.0 35.0 9.1 35 11 Illumination 2.3 2.4 2.5 3.0 0.6 25 8
Sub-total 84.0 98.7 111.5 135.0 36.3 37 11
Light Source
Discharge 57.6 63.4 63.5 79.0 15.6 25 8
(incl. SSLS) Halogen 14.2 13.7 13.0 13.0 ▲0.7 ▲5 ▲2
Sub-total 71.9 77.2 76.5 92.0 14.8 19 6
Other Machinery for industrial use and other
3.3 3.1 2.0 3.0 ▲0.1 ▲3 ▲1
Total 159.3 179.1 190.0 230.0 50.9 28 9
Company-wide basis
Operating income(billion yen) 10.3 13.1 13.5 20.0 6.9 53 15
Operating income(%) 6.5 7.3 7.1 8.7 1.4p - 6
5. Medium-term Management Plan by Business Segment a. Sales by Business Segments
11
Expand the total solution business ・Establish solution provision-type business model ・Establish stable revenue model
Cinema (+) Continued expansion of demands in
emerging countries and demands for premium cinema screens
(+) Increase provision of high-end cinema (Laser projector + Audio system, etc.) General imaging (+) Expand the digital signage business–a
growth field
5. Medium-term Management Plan by Business Segment b. Equipment Business b-1. Imaging
70.3
97.0
97.0 billion yen (Against FY15 : +26.7billion yen,
increase by 38%)
60.3
Target Sales (FY2018)
Business environment & Strategy
Measures
12
Digital signage&Lobby advertisement
CHRISTIE
Hardware
Software
Service
Content
5. Medium-term Management Plan by Business Segment b. Equipment Business b-1. Imaging
Expand Total Solutions for Imaging Cinema
Projection Mapping
Network Operation Center
13
5. Medium-term Management Plan by Business Segment b. Equipment Business b-2. Optical
25.9
35.0
目標 売上高 FY2018
Structural reform aimed at normalizing profitability ・Revise Group strategy
UV equipment (+)Innovate semiconductor packaging technology (+)Invest in automotive and infrastructure, expand
data center (+)Investment opportunities through introduction
of OLED (-)Slowdown in smartphone growth Cure equipment (+)Continued LCD investment in China (+)Continued needs for higher resolution in small-
/medium-sized LCDs (-)Decline in demand as OLED replaces LCD
35.0 billion yen (Against FY15 : +9.1billion yen,
increase by 35%)
21.2
Target Sales (FY2018)
Business environment & Strategy
Measures
14
Reference: Structural Reform in the Optical Equipment Business
FY2015 FY2018 FY2016
1st Stage
Optimization of production sites (Shift to a manufacturing structure that leverages
Group company strengths)
Revenue stabilization through reinforcement of services and consumables business
Profitability normalized
Current medium-term management plan(2nd Stage)
Business structure improvements
(Manufacturing standardization, quality improvement)
15
Reference: Biomedical Business
Continued Necessary Investment to Groom into Third Core Business Policy
Business Strategy
Progress to independent business stage
・ Concentrate on four businesses (1) Skin care business (2) Biotesting and diagnostics business (3) Biomarker business (4) Vein access equipment business
・ Expand Group earnings by strengthening Group cooperation
(Chinese market as a strategic region) ・ Aggressively use M&As
(1) Skin care business
(3) Biomarker business
(4) Vein access equipment business
(2) Biotesting and diagnostics business
16
UV lamp (-) Mature market (+) Promote differentiation (high efficiency, long-life) Lamps for cinema (+) Increased demand in emerging countries (-) Tougher price competition Lamps for data projectors (-) Low market growth (+) Increase share by strengthening low-end position New business field (+) Participate in growth fields such as environment, hygiene,
automotive Solid state light sources (+) Strengthen lineup to expand into new fields
5. Medium-term Management Plan by Business Segment c. Light Source Business
77.2
Existing business: Maintain share and improve manufacturing costs New business: Aggressively enter into growth markets
Maintain profitability and grow sustainably
92.0
92.0 billion yen (Against FY15 : +14.8billion yen,
increase by 19%)
Target Sales (FY2018)
Business environment & Strategy
Measures 71.9
17
Reference: Solid State Light Sources Business
・Establish an independent position in the solid-state light source market ・Specialize in six business domains centered on the industrial field
販売数量
Automotive
Industry Process
Measurement
Illumination
Imaging
Science Medical
Bio 付加価値 Added value
Sales Volume
18
Reference: Initiatives for Open Innovation – Head Office Showroom
19
Contact: Corporate Planning Department, USHIO INC.
(03)-5657-1007 [email protected]
http://www.ushio.co.jp/jp/